Sioux Falls Market Report: September 2026

This is the September 2026 Sioux Falls market report: the latest numbers from the Realtor Association of the Sioux Empire (RASE), what moved last month, and what the data means for buyers and sellers across the metro. I'm Jennifer Krosch, a Realtor with eXp Realty in Sioux Falls, and I read these reports the way I walk through homes: looking for what is solid, what is soft, and what actually matters to your next move.

September's headline: a record average price

The story that jumped out of the September report is the average sales price. It hit a record $456,855, up 19.4% from a year earlier and well above the previous 2026 monthly high of $412,105 set in June. That number made headlines, and for good reason, but it needs context before anyone should panic or celebrate.

Averages are easily pulled upward by a handful of very expensive sales, and that is exactly what happened. The September average was pushed up in part by high-dollar closings, including a $6 million estate on South Minnesota Avenue. One sale like that can move the average by tens of thousands of dollars without changing what a typical home costs.

That is why the median matters more. The median sales price, the middle price of everything that sold, came in at $344,600 in the city of Sioux Falls in September. Across the broader metro, the median was around $350,000, up about 1.4% from a year earlier. In plain terms, the typical home in Sioux Falls is worth more than it was a year ago, but the double-digit average jump overstates the everyday market.

The September numbers at a glance

Here is what else the September data showed:

• Closed sales: 219 homes in the city, up from 189 a year earlier, a jump of nearly 16%.
• New listings: 450 houses, down 2.2% from 460 in September 2025. Fresh supply is still not keeping pace.
• Median sales price (city): $344,600.
• Median sales price (metro): around $350,000, up about 1.4% year over year.
• Average sales price (city): a record $456,855, up 19.4% year over year, skewed by high-dollar sales.

The combination of more closings and fewer new listings is the simplest summary of this market: demand is there, and buyers are snapping up the homes that come on the market. The constraint is not demand, it is supply.

Supply is still the tight side of the market

The inventory picture did not loosen in September. The Sioux Falls metro had about 1,379 homes for sale, down 24.8% from a year earlier. Months of supply fell to 3.9, down from 5.9 the year before. For context, anything under roughly five months of supply generally favors sellers, and 3.9 is clearly on the tight end.

For sellers, that is the good news: you are listing into a market with more buyers than homes, and well-priced homes are getting picked up. For buyers, it is the challenge: with fewer homes to choose from, the right property can come on the market and go under contract quickly, so being ready matters more than waiting for a broad selection.

How fast homes are selling

Homes in the metro averaged about 86 days on market in September. That is a little over two and a half months from listing to an accepted offer. It is not a frenzy like the pandemic years, but it is a market where the homes priced and presented well move on a normal timeline, while overpriced homes sit and eventually need a correction.

The lesson for sellers is unchanged: condition and pricing do the heavy lifting. A home that is priced against current, comparable sales and shows well will find a buyer in the normal window. A home that starts high bleeds its first few weeks of buyer attention and often sells for less in the end.

What mortgage rates are doing

Rates are the other half of the affordability story right now, and they have moved up. The national average 30-year fixed rate was 7.40% as of October 8, 2026, according to Freddie Mac, up from about 6.30% a year earlier and near the highest level in about three years.

Local numbers look a bit better than the national average. Sioux Falls lenders were quoting around 6.10% for a 30-year fixed in early September, with 15-year rates near 5.45%, FHA around 5.85%, and VA around 5.50%. Local quotes can lag the national reading, and they reflect competition among lenders here, which is exactly why the number that matters is a current quote from a local lender, not a headline.

What does this mean practically? A higher rate raises the monthly payment on the same price, so buyers' budgets buy a little less house than they did a year ago. But Sioux Falls prices have also held up, and buyers with a strong pre-approval and clear priorities are still finding homes, often with room to negotiate on the right property.

What this means for buyers and sellers

Here is my honest read of the September report. More closings, fewer new listings, and a record average that is flattered by a few big sales: put together, the market is healthy and still tight on supply, with prices holding up.

For sellers, the September data says the market is with you, with one caution. Inventory is down and buyers are active, so this is a good time to sell. But pricing still has to be realistic, because homes are averaging close to three months on market, and the buyer pool is disciplined about overpriced listings. Present well, price against current comparables, and you can expect real activity.

For buyers, the September data says be organized. The shortage of homes means the ones that fit your list get taken quickly, so a pre-approval, a clear list of must-haves, and an agent who can move fast are your edge. At the same time, the market is not out of reach: with rates near their recent peak and supply this tight, the buyers who win are the ready ones, not the ones who wait for a perfect moment that may not come.

My bottom line: this is a solid, tight market where the fundamentals for Sioux Falls are still strong. If you would like to talk through what these numbers mean for your specific home or your search, reach out any time. That is what I am here for.

FAQ: September 2026 Sioux Falls Market